Story perspectives

KFC to switch U.S. drinks from Pepsi to Coca-Cola

By Drooid · Oct 16, 2026, 3:07 PM UTC · How we work

Summary

Story summary

KFC will replace Pepsi with Coca-Cola as its U.S. beverage partner.
The transition begins in January 2027 and will finish by spring 2027.
KFC President Catherine Tan-Gillespie said the partnership supports the Kentucky Fried Comeback.
Coca-Cola President Dagmar Boggs said the deal creates new growth possibilities for both brands.
Analysts say the switch could hurt PepsiCo’s soda sales while boosting Coca-Cola’s market presence.

History

Historical Context

In 1995, Coca-Cola secured a ten-year exclusive beverage contract with McDonald’s, ending PepsiCo’s long-standing presence in the global fast-food chain. The agreement projected $1 billion in annual soda sales and shifted roughly 2.5 billion drinks toward Coca-Cola products nationwide for U.S. consumers. Today, KFC’s decision to replace Pepsi with Coca-Cola by spring 2027 mirrors that 1995 realignment, swapping beverage partners to revitalize brand momentum across the United States. The shift could pressure PepsiCo’s market share while reinforcing Coca-Cola’s dominance, echoing reshaping seen after the McDonald’s deal and prompting Burger King to renegotiate soda contracts.

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Story summary

KFC will replace Pepsi with Coca-Cola as its U.S. beverage partner.
The transition begins in January 2027 and will finish by spring 2027.
KFC President Catherine Tan-Gillespie said the partnership supports the Kentucky Fried Comeback.
Coca-Cola President Dagmar Boggs said the deal creates new growth possibilities for both brands.
Analysts say the switch could hurt PepsiCo’s soda sales while boosting Coca-Cola’s market presence.

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